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mercer county, il | I am no marketing guru, but to me I like that HTAs allow me to keep my upside open, while limiting my downside, and generally I can recover my fees in 1 roll.
Here is my actual decision process last Friday.
I had a December HTA for 4.19 after fees. I think it was .3 to hedge.
If I delivered it the Dec basis has been .18 or .19 under since they started pricing it. And I couldn't work it in as IP corn so that +.50 is off the table.
If I rolled it to March I would pick up .11 carry minus .2 to roll, so it becomes a 4.28, and the March basis is .9 under. And I think I can deliver as IP so maybe another .50 premium.
Edited to add I was referring to upside in carry and basis appreciation, and specialty marketing. Not upside in the board.
So sell in Dec for 4.00 cash
Sell in March for 4.19 cash possibly 4.69 if room for IP
Needless to say I rolled it, right after kicking myself for not hedging more. The fees are a killer, I hedge through an elevator I rarely actually deliver to, but they give me options to haul to different destinations, and have low fees.
Edited by blowsand 11/26/2018 02:06
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Questions about rolling HTAs at the coop to capture carry/basis
